If you’re one of the millions of Americans struggling with student loan debt, listen up. President Biden just announced a federal student loan relief plan that could eliminate $10,000 in student loan debt for most people, and up to $20,000 for low-income borrowers.
There are a handful of requirements that you must meet in order to take advantage of these student loan relief programs. Plus, they may not completely eliminate your payment responsibility, depending on your income and total amount of debt. But they may help you manage your money and relieve some of the stress of paying your debts.
Student loan debt is extremely common among Americans, especially young people between the ages of 18 and 35. The cost of obtaining a college education has skyrocketed in recent years, and it is easier than ever to borrow large sums of money to cover the cost of tuition.
Student loan relief is something that is on the minds of millions of Americans. Monthly payments can be hefty; in some cases, the interest alone is more than the premium. There are a couple of ways to help you ease the financial burden of your student loans.
If you find it difficult to commit to your monthly student loan payments, you may benefit from a different repayment plan. An income-driven repayment (IDR) plan changes your monthly payment amount so that it is more affordable for you. The amount of your monthly payment is determined by your income and family size.
Another type of student loan relief involves reducing or eliminating your payments altogether. It may sound too good to be true, but there are several student loan forgiveness programs available to help you lower your debt.
With student loan forgiveness, a portion, percentage or exact amount of your student loans is cancelled. The exact amount of forgiveness depends on the type of forgiveness program for which you qualify. And, depending on the program, you generally need to meet certain criteria before your loan is forgiven.
If you need student loan relief but do not qualify for any of the above programs, you can always contact your loan servicer to discuss your payment options. There may be additional options available to you, like a period of forbearance (a set period of time during which you do not have to make payments). You will still be responsible for those missed payments, but can defer them until later.